Alok Industries to launch $100 mn share sale by March end

Alok Industries to launch $100 mn share sale by March end

Mumbai: Textiles maker Alok Industries Ltd is planning to launch a $100-million share sale to institutions by the month-end, a senior official said on Wednesday.

“We are contemplating (the share sale) before the end of March, its about $100 million," Alok’s chief financial officer Sunil Khandelwal told Reuters.

“The pricing is yet to be finalised," Khandelwal said.

Alok Industries will use the proceeds for capital expenditure and working capital requirements, he said.

The firm is planning a Rs600 crore capex over the next two fiscals to streamline operations and augment capacity in the wake of rising demand for textile products, he said.

Textile makers are on a recovery track after battling a slowdown in consumer spending for much of 2008-09, partly due to a demand rebound in the developed economies of the US and Europe.

Alok’s net sales for the December quarter increased by a third to Rs1,082 crore year on year reflecting the rise in demand.

Alok Industries has also announced a plan to sell its real estate portfolios and get a net inflow of Rs700 crore over two years to cut down its debt.

State Bank of India, Axis Bank and IDBI Bank are among arrangers for the issue.

At 2:18 pm, shares of Alok Industries were down 0.21% at Rs23.55 in a firm Mumbai market.